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Upheaval in National Security, Government and the Markets: Here’s the State of Play Upheaval in National Security, Government and the Markets: Here’s the State of Play
(about 13 hours later)
Congress, the military and the markets were all in upheaval on Thursday. Congress, the military and the markets have been in upheaval, and the news is too much to fit in one story. Here’s a rundown of the state of play, with links to our in-depth coverage for further reading.
The news is too much to fit in one story. So here is a rundown of the state of play, with links to our in-depth coverage for further reading.
The Trump administration on Thursday announced the withdrawal of about 7,000 American troops from Afghanistan in the coming months, around half of what the American military has there now.The Trump administration on Thursday announced the withdrawal of about 7,000 American troops from Afghanistan in the coming months, around half of what the American military has there now.
This comes one day after President Trump abruptly ordered the withdrawal of 2,000 American troops from Syria, overruling many of his top generals and military advisers. The decision, which was announced on Twitter, plunged the administration’s Middle East strategy into disarray, rattled allies like Britain and Israel, and stranded Syria’s ethnic Kurds, who have been faithful partners in fighting the Islamic State.This comes one day after President Trump abruptly ordered the withdrawal of 2,000 American troops from Syria, overruling many of his top generals and military advisers. The decision, which was announced on Twitter, plunged the administration’s Middle East strategy into disarray, rattled allies like Britain and Israel, and stranded Syria’s ethnic Kurds, who have been faithful partners in fighting the Islamic State.
Defense Secretary Jim Mattis is leaving the Pentagon. Mr. Trump tweeted that Mr. Mattis would be retiring in February. Shortly after, the Defense Department released a letter from Mr. Mattis to the president saying, “Because you have the right to have a secretary of defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my position.”Defense Secretary Jim Mattis is leaving the Pentagon. Mr. Trump tweeted that Mr. Mattis would be retiring in February. Shortly after, the Defense Department released a letter from Mr. Mattis to the president saying, “Because you have the right to have a secretary of defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my position.”
Congress is careening toward another government shutdown. If lawmakers cannot pass a budget or a stopgap spending bill by Friday at midnight, the government will experience a shutdown for the third time this year.Congress is careening toward another government shutdown. If lawmakers cannot pass a budget or a stopgap spending bill by Friday at midnight, the government will experience a shutdown for the third time this year.
President Trump torpedoed a short-term spending bill on Thursday that had already passed the Senate and was on deck in the House, doubling down on his demand for $5 billion in funding for a southern border wall. Mr. Trump has made clear that he is willing to take the blame for a shutdown in the pursuit of his signature campaign pledge.President Trump torpedoed a short-term spending bill on Thursday that had already passed the Senate and was on deck in the House, doubling down on his demand for $5 billion in funding for a southern border wall. Mr. Trump has made clear that he is willing to take the blame for a shutdown in the pursuit of his signature campaign pledge.
The Senate must return to Washington on Friday to vote on a House-passed stopgap spending bill that included $5.7 billion for the wall and is sure to die.The Senate must return to Washington on Friday to vote on a House-passed stopgap spending bill that included $5.7 billion for the wall and is sure to die.
Stocks tumbled yet again on Thursday. The S & P 500-stock index declined 1.6 percent, and the Dow Jones Industrial index fell 2 percent. The tech-heavy Nasdaq composite fell 1.6 percent, pushing it 19.5 percent below its late-August peak. A decline of 20 percent marks the official start of a bear market. Stocks opened slightly higher on Friday, after tumbling yet again on Thursday: the S & P 500-stock index declined 1.6 percent, while the Dow Jones Industrial index fell 2 percent. The tech-heavy Nasdaq composite fell 1.6 percent, pushing it 19.5 percent below its late-August peak. A decline of 20 percent marks the official start of a bear market.
Investors are worried that the trade war, rising interest rates (in part a product of the ballooning government deficit), and the end of the wood filler from tax cuts will all erode corporate profit growth. Global markets were mostly down on Friday.
Investors are worried that the trade war, rising interest rates (in part a product of the ballooning government deficit), and the end of the windfall from tax cuts will all erode corporate profit growth.
On Wednesday, Jerome H. Powell, the Fed chairman, defended the decision to raise the benchmark rate for the fifth consecutive quarter, a move made despite political pressure and financial market worries.On Wednesday, Jerome H. Powell, the Fed chairman, defended the decision to raise the benchmark rate for the fifth consecutive quarter, a move made despite political pressure and financial market worries.
The benchmark rate will now sit in a range from 2.25 percent to 2.5 percent.The benchmark rate will now sit in a range from 2.25 percent to 2.5 percent.